Ethereum declined 5% and it broke the main 0 support against the US Dollar. ETH price is recovering from the 5 support, but it could face hurdles near 0.
- Ethereum is down 5% and it broke the 0 and 5 support levels.
- The price is currently recovering from 5, but it is well below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its decline unless it clears the 0 resistance area in the near term.
Ethereum Price is Down 5%
Yesterday, we discussed the chances of a sharp decline in Ethereum below the 0 support. ETH price did fail to clear the 0 resistance and it declined sharply (unlike bitcoin) below the 0 and 5 support levels.
The decline gained pace below 5 and the price settled below the 100 hourly simple moving average. It tested the 5 support zone and a low is formed near 3. Ether price is currently recovering and trading above the 0 level.
There was a break above the 23.6% Fib retracement level of the recent drop from the 8 high to 3 low. On the upside, the price is facing a lot of hurdles near the 5 and 0 levels.
Source: ETHUSD on TradingView.com
There is also a key bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD. The trend line is close to the 100 hourly simple moving average, and the 50% Fib retracement level of the recent drop from the 8 high to 3 low.
To move back into a positive zone, ether price must break the 0 resistance level and settle nicely above the 100 hourly simple moving average. The next stop on the upside could be near the 0 resistance.
More Losses in ETH?
If Ethereum fails to clear the 5 and 0 resistance levels, there is a risk of more losses. An initial support on the downside is near the 8 level.
The main support seems to be forming near the 5 level. A clear break below the 5 support zone could start an extended decline in ether towards the 8 support level in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is recovering and close to the 40 level.
Major Support Level – 5
Major Resistance Level – 0